IS A HOUSING FUND AND BUDGET NECESSARY?
If your are a first time home buyer it is important to know what you should do before you go searching for a house. To begin with you should start a home buying fund. The fund should cover the various costs associated with buying a home. The more money you can save, the better.
Your largest expense will be the down-payment and closing cost.
The next step is establishing your housing budget. A housing budget is the amount you can realistically afford to pay toward a mortgage each month. To determine what your housing budget is
create a list of all your expenses for the month, subtract your monthly expenses from your income, the balance is what you your costs of your mortgage should be. The amount of your mortgage payment should be less than 50% of your income.
The following items need to be paid monthly, they are your mortgage payment( which will probably include insurance and property taxes) home maintenance (heat, water, perhaps landscaping and snow removal etc). All these things cost money, and they should all be part of your total housing costs.
The fact is you can be approved for a loan that is higher than what you have budgeted for. This does happen, so you need to establislh a housing budget before you apply for a loan.
Selling or Buying Call Paula @718-968-2222, Classic Home Sales
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